Cornell University Phased Retirement Program for Contract College Faculty
The University's Phased Retirement Program for Contract
College Faculty permits eligible full-time tenured faculty
members in the contract colleges at Ithaca to reduce their teaching, research,
and administrative duties prior to retirement. This Program allows a gradual
transition of a specified duration of time (not to exceed five years) to
retirement for both the faculty member and his or her department and allows
for a planned recruitment of new faculty members. This Program was developed
and endorsed by the Provost and approved by the Executive Committee of the
Board of Trustees at their December 1998 meeting.
Eligibility
- From January 1, 1999 to June 30, 2000, phased retirement was available to all full-time tenured faculty members who are age 55 and above who have held full-time appointments at the University for at least ten years.
- Effective July 1, 2000, phased retirement was available to all full-time tenured faculty members between the ages of 55 and 70 who have held full-time appointments at the University for at least ten years.
- Effective July 1, 2000, any full-time tenured faculty member who fails
to qualify for a phased retirement agreement under point 2 solely because
the individual reaches ten years of service after age 70 will be eligible
for a phased retirement agreement for twelve months after he or she
achieves ten years of service.
Interested faculty members should discuss plans with their department chair and/or dean's representative to develop a mutually agreeable set of duties, appointment dates and duration. Appointments will normally be at least half-time for one term each academic year, and normally should not exceed half-time for the full academic year.
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Participation
Once a formal written agreement has been completed, the faculty member's
department will be required to submit notification of the member's change
in employment status by completing an Universal Personnel Action Form (UPAF)
and sending it to Records Administration, Pine Tree Road, East Hill Plaza.
This should occur at least 90 days in advance of the beginning of the phased
retirement period. Records Administration will then see that the appropriate
offices are notified to process the phased retirement agreement.
Benefits Coverage
Certain benefits are provided as if the faculty member were full-time
while other benefit programs are modified based upon the actual appointed
time for the faculty member.
Health Insurance
If the faculty member's appointment is for one-half time or more, coverage
will continue as if at full-time.
If the faculty member's appointment is for less than one-half time, he
or she is not eligible for health insurance benefits. However, faculty members
on terminal appointments leading to retirement, with accrued sick leave
credits, have the option of beginning coverage in a retired status during
the period of the phased retirement agreement.
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Optional Retirement Plan
If the faculty member's appointment is for one-half time or more, the faculty
member will receive additional annual payments equal to the difference between
the retirement contributions that the State would have made for full-time
employment and the contributions made based on his or her actual part-time
salary. These additional contributions will be deposited into an account
in the faculty member's name under the Cornell University Retirement Plan.
The Optional Retirement Plan does not permit additional voluntary contributions
to the basic plan.
If the faculty member's appointment is for less than one-half time, the
faculty member will receive additional annual payments equivalent to the
contributions the State will make based on their actual part-time salary.
The Optional Retirement Plan does not permit additional voluntary contributions
to the basic plan.
Information on the Plan investment funds can be obtain by calling the investment
vendor:
- TIAA-CREF: (800) 732-8353;
- ING: (800) 677-4636;
- MetLife: (800) 560-5001;
- AIG VALIC: (800) 448-2542;
- AIG Retirement: (800) 892-5558, ext. 88174
Representatives from the investment vendors are on campus frequently to provide personal counseling services for retirement planning. Appointments can be made by calling:
- TIAA-CREF: (877) 209-3144;
- ING: (888) 883-6320;
- MetLife: (315) 521-1830
New York State Employees Retirement System (NYSERS)
The faculty member participating in this program does not receive defined
employer contributions and therefore should carefully consider the effect
that a reduced-time terminal appointment may have upon their NYSERS retirement
benefit. Information on this program can be obtained by calling NYSERS Information
Call Center in Albany at (866) 805-0990.
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Cornell University Tax Deferred Annuity Plan
Phased retirement participants may continue making voluntary pre-tax contributions
to their accounts in the Tax Deferred Annuity Plan based upon their actual
phased retirement salary. These contributions are subject to regulatory
limits.
Participants who are age 59 ½ or older may elect to receive distributions from any and all retirement accounts during the phased retirement period. Participants who are younger than age 59 ½ may only elect to receive distributions paid out over 10 or more years or over their life expectancy. Loans and financial hardship withdrawals are available at any age.
Contact the investment vendors directly for the appropriate distribution
forms and related materials (TIAA-CREF: (800) 842-2776 or Fidelity: (800)
343-0860). Representatives from both investment vendors are on campus frequently
to provide personal counseling services for retirement planning. Appointments
can be made by calling TIAA-CREF: (800) 732-8353 or Fidelity: (800) 642-7131.
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Basic Life Insurance
If the faculty member's appointment is one-half time or more, basic life
insurance coverage will continue based upon the member's full-time equivalent
salary. The basic life insurance coverage provides one-half of the member's
full-time equivalent salary up to a maximum benefit of $50,000.
Group Universal Life (GUL) Insurance
The faculty member may elect to continue his/her full amount of Group
Universal Life (GUL) coverage. Premium payments for this coverage will continue
to be made by payroll deduction.
If the faculty member's appointment is less than one-half time, basic life insurance coverage will continue based upon one-half of the member's actual phased retirement salary up to a maximum of $50,000. The faculty member may elect to continue his/her full amount of Group Universal Life (GUL) coverage.
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Personal Accident Insurance
If the faculty member's appointment is for one-half time or more, coverage
will continue based upon the level of coverage that the member has chosen,
however, amounts above $250,000 cannot exceed ten times the member's full-time
equivalent salary.
If the faculty member's appointment is for less than one-half time, coverage
will continue based upon the level of coverage that the member has chosen,
however, amounts above $250,000 cannot exceed ten times the member's actual
phased retirement salary.
Long Term Disability Insurance
If the faculty member’s appointment is for one-half time or more then
the faculty member’s coverage will continue but will be provided based
on the member’s actual phased retirement salary on the date of disability.
Cornell Children's Tuition Scholarship
Benefits will be provided as if the faculty member were full-time.
Select Benefits
The faculty member's coverage and payroll deductions will continue based
upon the level of coverage that the member has chosen, but in no case may
deductions from paychecks to the Select Benefits account exceed 50% of the
paycheck amount. Inquiries about Select Benefits should be directed to Benefit
Services at (607) 255-3936.
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Auto/Homeowners Insurance
The faculty member's coverage and payroll deductions will continue based
upon the level of coverage that the member has chosen. Inquiries about auto
and homeowners insurance should be directed to Marsh@WorkSolutions at (800)
533-4861.
Long Term Care
The faculty member's coverage and payroll deductions will continue based
upon the level of coverage that the member has chosen. Inquiries about long
term care should be directed to CNA toll free at (866) 234-9031.
Other Payroll Deductions
Any other payroll deduction benefits will be unaffected as long as the faculty
member continues to receive pay from the University.
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Post-Retirement Employment
New York State law limits the amount that a contract college employee can
earn from State sources in retirement.
State Retirement Incentives
Nothing contained in these policies shall prohibit or limit an individual's
eligibility to participate in current or future State sponsored retirement
incentive programs unless explicitly stated in the phased retirement agreement.
For More Information
Contact Benefit Services at (607) 255-3936, benefits@cornell.edu
The Phased Retirement Program is governed according to legislation adopted
by the Executive Committee of the Board of Trustees of Cornell University
and may be altered, amended or eliminated with the approval of the Board
of Trustees. Every attempt has been made to ensure the accuracy of this
summary, however, in the case of any inconsistency between this summary
and the legal documents for Cornell University's benefit programs, the legal
documents will prevail.